Boeing Strike Ends As Workers Accept New Contract Offer
On Monday, workers from Boeing’s US West Coast plants accepted a new contract offer from the management, thereby concluding a seven-week strike which had largely brought the company’s airplane production to a standstill. As reported by Reuters and News.ro, the vote in favor of the contract was supported by 59% of the union members.
Details of the New Contract
The new contract guarantees a 38% pay increase over the next four years, along with other benefits. This resolution brings much-needed relief to the company, which had been grappling with numerous financial and logistical challenges. Kelly Ortberg, the newly appointed CEO, applauded the approval of the contract, highlighting the significant role of the union in shaping the company’s future.
Benefits for Employees and the Company
Union leader Jon Holden regarded the strike’s end as a significant victory for the employees, who are now set to return to work. Although the new contract will not reinstate retirement benefits, it offers larger company contributions towards employees’ 401(k) plans. Boeing also committed to constructing a future model of the airplane in the Seattle area.
Financial Implications of the Strike
The strike incurred daily losses of approximately $100 million for Boeing. It is anticipated to take several weeks to restart the production of airplanes, particularly the 737 MAX model. Over the next four years, the contract is projected to add roughly $1.1 billion to the company’s wage costs, inclusive of a $12,000 ratification bonus for each union member.
Support from US President Joe Biden
The agreement received backing from US President Joe Biden, who praised the deal as a testament to the effectiveness of collective bargaining.
